IN FOCUS
FUND
R&M WORLD RECOVERY
This fund has been likened to a whisky drinker “who prefers his tipple not only neat,
but at full-cask strength”
tipple not only neat, but at fullcask strength. Investors need
either an iron constitution or to
recognise that a little may go a
long way,” Square Mile said.
For example, while R&M
World Recovery has comfortably
outperformed since launch, it
has tended to fare far worse
during periods of market stress.
This is evident in its maximum
drawdown, which is more than
twice as great as that of its
benchmark and sector since
launch.
Nevertheless, Square Mile says
it is likely to be a decent longterm outperformer and therefore
investors just need to be patient.
“This is a high-risk, highreturn strategy that
really needs to be considered over
the long term,” it finished.
PERFORMANCE OF FUND VS SECTOR
AND INDEX SINCE LAUNCH
IA Global (20.11%)
MSCI AC World (21.18%)
60%
50%
R&M World Recovery (46.38%)
40%
30%
20%
10%
0%
Jun
Apr
Feb 15
Dec
Oct
Aug
Jun
Apr
Feb 14
Dec
Oct
Aug
-10%
Jun
MANAGER: Hugh Sergeant
FUND SIZE: £194.5m
LAUNCHED: 13/04/2013
YIELD: 2.5%
OCF: 1.24%
CROWN RATING: N/A
potential. As a result, R&M World
Recovery is currently overweight
economically sensitive stocks
and troubled regions such as
mainland Europe and China.
This strategy has worked well
since launch: the fund is in the IA
Global sector’s top decile and has
more than doubled the returns of
its benchmark over this time, with
returns of close to 50 per cent.
R&M World Recovery features
on Square Mile’s Academy of
Funds, due to the high opinion in
which the group holds Sergeant
and his quantitative and qualitative
strategy. Square Mile says it is a
good option for investors who want
a different kind of global fund – but
only if they are willing to hold for
the long-term.
“This fund is a little like a
whisky drinker who prefers his
Apr 13
I
nvestors with a long-term
horizon are often told they can
afford to take a higher degree
of risk within their portfolio in
pursuit of strong future gains.
A value strategy is one of the
best approaches for this sort
of investor, because although
there are clear risks in buying
companies that are out of favour
among the wider market, the
potential rewards are also all
too clear to see if they become
flavour of the month once again.
In order to get the most out of
a value fund, investors need to
look for managers with a flair
for stockpicking. There are many
highly rated managers with a
proven and suc 6W76gV